A recent survey by Jefferies and Bare International found that eight out of 12 grocers surveyed in the Atlanta, Chicago and Dallas markets say their everyday prices have increased, indicating they’re passing along input costs to shoppers as deflation eases, reports Supermarket News.
The survey also found that nine out of the 12 grocers polled reported increases to their best-priced basket prices, which indicates retailers are pulling back on their promotions.
The price deflation that has impacted retailers for nearly two years now appears to be easing.
In recent earnings reports, executives have noted that rising prices on items like eggs, meat and milk has boosted sales and allowed companies to pass along increasing input costs to their shoppers.
Much of this deflation was connected to the strength of the U.S. dollar, which has slowed exports and boosted imports.
California's drought, bird flu outbreaks and smaller-than-expected cattle herds also spurred price escalations, worsened the problem.